Mace Security International Secures $24 Million in Financing From Fusion Capital
6 April 2000
Mace Security International Secures $24 Million in Financing From Fusion Capital
MOUNT LAUREL, N.J., April 6 Mace Security International,
Inc. (Mace) , a leading provider of car care services, today
announced it has entered into an agreement with Fusion Capital Fund II, LLC.
Fusion Capital has agreed to purchase up to $12 million of the Company's
common stock. In addition, this agreement gives Mace the option to require
Fusion Capital to continue purchasing shares of the Company's common stock up
to a total of $24 million. The proceeds of the financing will be used to
retire debt, complete acquisitions and provide working capital.
Fusion Capital is an innovative, broad-based investment fund located in
Chicago, Illinois and is dedicated to meeting the business needs of its
partner companies. Fusion Capital offers a wide range of investment products
ranging from special situation financing to long-term strategic capital
financing.
Under the Agreement, Fusion Capital has committed to fund Mace a minimum
of $1.5 million per month. The agreement with Fusion Capital provides that
after the Securities and Exchange Commission has declared effective a
registration statement, Mace will sell at least a $1.5 million per month of
its common stock to Fusion Capital at a price based upon the future
performance of the common shares without any fixed discount to the market
price. At the Company's sole option, Fusion Capital can be required to
purchase additional amounts of common stock each month up to $24 million in
the aggregate.
In order to give Mace the greatest control and flexibility over this
financing, the Company has negotiated several key features with Fusion
Capital. First, Fusion Capital has agreed not to engage in any direct or
indirect short selling or hedging of the common stock. Second, Mace has the
right to prevent any purchase of its common stock when the price is below
$7.00. Third, Mace has the right to terminate the agreement at any time
without any cost to the Company.
In commenting on the capital raised by Mace, Louis D. Paolino, Jr.,
Chairman and Chief Executive Officer of the Company, said, "We are very
pleased to have Fusion Capital as our financial partners. We believe the
terms of the financing are extremely favorable to Mace and our future growth.
The completion of this financing will strengthen our balance sheet and will
permit us to continue acquiring car washes in our established regions." He
added, "In addition, we will use the additional capital provided to fund our
internal growth program, which consists of constructing new car wash
facilities and rolling out our new brand name image. The proceeds will also
provide working capital for our existing operations."
Mace Security International, Inc. is a provider of car care services,
which owns and operates numerous car washes nationwide. The Company, through
its wholly owned subsidiary, Innovative Control Systems, Inc., is also a
leading manufacturer and supplier of a Windows(R)-based computerized car wash
tunnel control system. Additionally, MSI is a leading producer of less lethal
defense sprays for the consumer market.
Certain statements and information included in this press release
constitute "forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. When used in this press
release, the words or phrases "will likely result," "are expected to," "will
continue," "is anticipated," "estimate," "projected," "intends to" or similar
expressions are intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks, known and unknown, and uncertainties,
including but not limited to economic conditions, dependence on management,
dilution to shareholders, lack of capital, the effects of weather on the
demand for car care services, the affects of rapid growth upon the Company and
the ability of management to effectively respond to the growth, its ability to
achieve operating synergies, its ability to compete, regulatory matters, the
effects of competition, its ability to maintain the control of the Company's
cash business, and the ability of the Company to obtain additional financing.
Such factors could materially adversely affect the Company's financial
performance and could cause the Company's actual results for future periods to
differ materially from any opinions or statements expressed within this press
release. Additional discussion of factors that could cause actual results to
differ materially from management's projections, forecasts, estimates and
expectations are contained in the Company's SEC filings, including its S-3
registration statements and 10-KSB for 1999.
Contact:
Eduardo Nieves, Jr., Investor Relations
(856) 778-2300 - http://www.mace.com